Figure 3-10.The following cost formula was developed using the monthly data for an accounting firm.Total cost = $87,100 + ($210 * number of tax returns)
-Refer to Figure 3-10. The term "total cost"
A) is the independent variable.
B) is the dependant variable.
C) is the intercept.
D) is the variable rate.

Question

Quizplus · Accepted Answer

Total cost is the dependent variable as it depends on the number of tax returns processed. The independent variable is the number of tax returns processed. The intercept is the constant term of the formula, in this case, $87,100. The variable rate is the coefficient of the independent variable, in this case, $210 per tax return.